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Tuesday, December 17, 2024

Bitcoin zooms past $107K mark as Trump eyes crypto reserve

Bitcoin surged to a record high of $107,148 following comments from President-elect Donald Trump regarding the establishment of a U.S. Bitcoin strategic reserve, akin to the country’s strategic oil reserve.

The leading cryptocurrency recently traded at $106,877, reflecting a 5.43 percent increase since late Friday. Ethereum, the second-largest digital currency, also saw gains, rising 1.85 percent to $3,975.70.

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Investor optimism has intensified as many believe the incoming Trump administration will foster a more favorable regulatory landscape for cryptocurrencies. Bitcoin has skyrocketed approximately 150 percent in 2024 alone.

During a CNBC interview, Trump expressed his intent to position the U.S. as a leader in cryptocurrency adoption, stating, “We want to be the head.”

He confirmed plans for a crypto reserve similar to oil reserves, a notion he previously supported earlier this year.

Globally, governments hold about 2.2 percent of Bitcoin’s total supply, with the U.S. possessing nearly 200,000 Bitcoins valued at over $20 billion.

Despite this bullish sentiment, some analysts urge caution regarding the timeline for implementing a strategic reserve. Chris Weston of Pepperstone noted that while Trump’s comments provide hope, significant challenges remain ahead.

Bitcoin’s value has surged over 50 percent since November 5, coinciding with Trump’s election and the success of pro-crypto candidates.

The total cryptocurrency market capitalization has nearly doubled this year, surpassing $3.8 trillion according to CoinGecko.

Trump has shifted his stance on cryptocurrencies from skepticism to advocacy during his campaign, promising to make the U.S. the “crypto capital of the planet.”

He recently appointed David Sacks, a former PayPal executive and close associate of Elon Musk, as a White House czar for artificial intelligence and cryptocurrencies.

Additionally, Trump plans to nominate Paul Atkins, a pro-crypto attorney, to lead the Securities and Exchange Commission.

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